U.S. Energy Corp Announces Underwriting Agreement with Roth Capital Partners

U.S. Energy Corp. (NASDAQ: USEG) recently disclosed its entry into an underwriting agreement with Roth Capital Partners, LLC. The agreement, finalized on January 22, 2025, pertains to the underwritten offering of 4,236,000 shares of common stock, par value $0.01 per share, at a public price of $2.65 per share.

As part of the agreement, the company has granted the underwriters a 30-day option to acquire up to 635,400 additional shares of common stock, which was exercised in full on January 25, 2025. Standard representations, warranties, agreements, obligations, and closing conditions are included in the underwriting deal, along with indemnification clauses to shield the underwriters from specific liabilities under the Securities Act of 1933.

The underwriting agreement prohibits U.S. Energy Corp., its directors, executive officers, and affiliates from selling or transferring any common stock without obtaining written consent from Roth Capital Partners for 60 days following the final prospectus supplement related to the offering. The recent offering, made under the shelf registration statement on Form S-3, is expected to conclude on January 23, 2025.

The approximate $12.1 million net proceeds from the offering will be directed towards the development of a recent Montana acquisition, general corporate purposes, and working capital per the discretion of the company’s board of directors. Additionally, management has the option, as per the agreement terms, to utilize the proceeds to purchase shares of common stock from Sage Road Capital, LLC, also a current shareholder of the company.

This overview provides a snapshot of the underwriting agreement; however, full details can be accessed in the formal documentation attached as an exhibit to the Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission. Additionally, the company issued a press release on January 22, 2025, concerning the pricing of the offering.

The company has emphasized that the provided information is not to be construed as an offer to sell or a solicitation to buy any common stock, nor does it indicate an ongoing sale of securities in any jurisdiction where it would be deemed unlawful. It is clarified that this disclosure is regulated by Form 8-K and is not equivalent to a formal filing under the Securities Act or the Exchange Act.

The SEC filing also includes various exhibits, such as the underwriting agreement and a legal opinion related to the stock issuance and sale. Interested parties can find comprehensive financial statements and additional exhibits in the complete SEC filing for further insights.

The article is based on the details outlined in U.S. Energy Corp.’s recent Form 8-K submission.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read U.S. Energy’s 8K filing here.

U.S. Energy Company Profile

U.S. Energy Corp., an independent energy company, focuses on the acquisition, exploration, and development of oil and natural gas properties in the United States. It holds interests in various oil and gas properties located in the Rockies region, including Montana, Wyoming, and North Dakota; the Mid-Continent region comprising Oklahoma, Kansas, and North and East Texas; West Texas; South Texas; and the Gulf Coast regions.